By Caryl Auslander ● January 20, 2026

• Indiana Set to Opt Out of Some of Trump’s Federal Tax Cuts
• Public Contractor Ban Removed, ‘Good Faith’ Protections Added to Immigrant Work Eligibility Bill
• A $9 Billion Milestone: Indiana529 Reaches New Heights in 2026
• General Statehouse Update
• Hendricks County Chambers Update
• Action Items
• Important Dates

Indiana Set to Opt Out of Some 
of Trump’s Federal Tax Cuts

Indiana legislators are choosing not to adopt all of the federal tax cuts promoted by President Donald Trump.

Why it matters: The decision impacts how businesses and individuals in Indiana will be taxed, potentially altering financial planning and economic growth for both sectors.

• A significant tax break for businesses from the “One Big Beautiful Bill” is excluded from state taxes.

• Total state tax breaks could exceed $900 million if federal tax changes were fully adopted.

The big picture: The Indiana Senate is moving forward with Senate Bill 212, which adopts some but not all federal tax breaks.

• The bill excludes a costly federal tax cut on production property.

• The Senate Tax and Fiscal Committee is also considering 37 other federal provisions.

What’s next: The bill will proceed to a full Senate vote, with further debates expected on additional tax provisions.

• The Indiana House will review any measures endorsed by the Senate.

• Discussions are ongoing regarding exemptions for overtime and tips income. (Indiana Capital Chronicle)

Public Contractor Ban Removed, ‘Good Faith’ Protections Added to Immigrant Work Eligibility Bill

Legislation in Indiana now requires enhanced use of the E-Verify system for public works projects, following recent amendments to Senate Bill 87.

Why it matters: The changes aim to ensure that taxpayer money is spent only on legal workers, boosting accountability and preventing unauthorized employment.

• The bill expands E-Verify to all public works, closing loopholes previously exploited by some contractors.

What’s new: Employers acting in “good faith” are now protected from civil liability if they mistakenly verify a worker’s eligibility.

• A yearlong ban on violators was replaced with a safe harbor provision, responding to earlier criticisms.

The bottom line: Indiana is further committing to legal employment on public projects, balancing enforcement with practical contractor needs.

• The amended bill has passed committee and is headed to the Senate floor for approval. (Indiana Capital Chronicle)

A $9 Billion Milestone: Indiana529 Reaches New Heights in 2026

Indiana State Treasurer Daniel Elliott announced a historic milestone for the state’s education savings program, revealing that Indiana529 plans have officially surpassed $9 billion in total assets.

Why it matters: More Hoosier families are adopting a “fiscally responsible mindset” by saving for post-high school education, reflecting a shift towards non-traditional education pathways.

• Indiana529 funds can be used at a wide range of institutions, including four-year colleges, trade schools, and apprenticeship programs.

Driving the news: The program now boasts more than 463,000 active accounts, a testament to its growing popularity.

• Indiana residents benefit from state income tax credits worth 20% of contributions, up to $1,500 annually.

The bottom line: Under Executive Director Marissa Rowe, Indiana529 focuses on accessibility, allowing accounts to be opened with as little as $10.

• Tax benefits include tax-deferred growth and tax-free withdrawals when used for qualified expenses.

Go deeper: The Treasurer’s office offers a “Webinar Wednesday” series to help families navigate the program. Visit MyIndiana529.com for more information. (WIBC)

General Statehouse Update

Move, follow, or get out of the way.

Many say that each legislative session has its own feel—but this legislative session, as the kids say, is ‘just built different.’ Every week feels like deadline week, with signature, priority legislation receiving deliberate, detailed discussion in committee, with some held for amendments to strike the right balance.

Some caucus priorities have become a little prickly, with debate extending beyond the customary two-hour limit for committees. For example, SB 1, authored by Sen. Chris Garten (R-Scottsburg), received more than two hours of testimony on Thursday. SB 1 aims to reduce human services spending by citing fraud, waste, and abuse in Supplemental Nutritional Assistance Program (SNAP) and Medicaid programs, administered by Indiana’s Family and Social Services Administration. SB 1 earned testimony reminiscent of the larger national debate involving claims of SNAP fraud (which resulted in an injunction in federal court Wednesday evening).

Despite the methodical and deliberate process for priority bills, the course of legislative action can be swift when the legislature’s hand is forced—the House Public Health Committee heard testimony, entertained discussion, and passed HB 1012, which allows Medicaid recipients to receive an Explanation of Benefits like Medicare recipients, within the matter of 12 minutes during Tuesday’s House Public Health Committee. The fact is, legislators may not get another chance to have their bills heard if they don’t move out of committee at that one moment in time, given the expeditious schedule this session.

Priority bills on the move.

Also heard this week was HB 1002, an effort by Rep. Alaina Shonkwiler (R-Noblesville), that aims to address unaffordable utility bills, though the jury is still out on whether HB 1002 hits the mark, as both consumer advocates and utilities presented testimony opposing the bill. While Governor Braun issued his support of the effort during his State of the State Speech Wednesday evening, both Rep. Shonkwiler and the Chairman of the Utilities Committee, Rep. Ed Soliday (R-Valparaiso) acknowledged there is work to do on HB 1002 and the conversation will continue, with amendments scheduled to be discussed at the hearing this coming Tuesday morning.

Another House Republican priority bill was heard this week in HB 1001, authored by Rep. Doug Miller which seeks to address affordability in housing by introducing a set of robust changes to Indiana’s local government code, focusing on planning, zoning, building regulations, and housing development. The bill was heard in the House Local Government Committee this week, but held for further consideration and testimony next Tuesday.

Governor Braun outlines his priorities.

Governor Mike Braun addressed the state on Wednesday evening during his second State of the State address celebrating Hoosier successes and outlining his priorities for 2026. The focus of his priorities for 2026 fall under the theme of affordability. He outlined his support for HB 1002, authored by Rep. Alaina Shonkwiler (R - Noblesville) which enacts guardrails on investor-owned utility companies' ability to increase profit margins, HB 1001, which regulates homebuilding and availability of affordable housing, and elimination of medical debt for Hoosiers. Yet when it came to policy addressing childcare shortages across the state, Governor Braun stated that it was an issue he wanted to address further during next year’s budget session.

Football was also the theme of the SOTS address, with Governor Braun pushing to bring the Chicago Bears to Northwest Indiana. In addition, he spoke of a 9 year-old boy who wrote a letter to the Governor asking for him to order a two-hour delay on Tuesday, January 20th after the Indiana Hoosiers play in the college football playoff championship game. Governor Braun responded that he thought it was a great idea, but would allow for individual school districts to make those decisions. But either way - GO HOOSIERS!

As we reported last week, the days are long and the committee meetings are longer, so prepare yourself for a rush to the committee report deadline of Monday, January 26. We will update you as to the progress of each of your priorities as they move throughout the process, but please contact us at any time if you have any questions or concerns.

Hendricks County Chambers Update

This week was a whirlwind with 15 committee hearings on Wednesday alone, hearing over 65 bills. We are winding down with first-half committee hearings with the committee report deadline on Monday, January 26th - any bill that does not get passed out of committee by the end of that day will be considered dead for the session. Add to that a condensed week next week with the statehouse being closed for MLK Day on Monday, and we are looking at crunch time for bills to pass out of committee. One committee is even meeting Tuesday morning at 7:30 am to hear FIFTEEN bills (we joke that the committee chairman must not be an IU fan!) Please review your report closely and reach out to your TPA professional with any questions or concerns. Have a great weekend.

Topic: HOA - Childcare

Bill #/Title (linked): HB 1152 (Homeowners Association Matters)

Update:

• HB 1152 (Rep. Ethan Lawson) addresses key “homeowners association (HOA) matters” by increasing homeowner transparency and strengthening member involvement in HOA decision-making, including new limits around budget/assessment increases that can occur without homeowner participation.

• The bill removes language that previously allowed certain HOA budget increases without quorum, tightening the rules around when and how annual budgets/assessments can increase.

• HB 1152 prohibits HOAs from prohibiting or restricting qualifying in-home childcare operations in a single-family residence, removing HOA barriers to childcare access and supporting working families and workforce participation.

Action Items:

• HB 1152 passed out of committee 12–1, has been engrossed on 2nd reading, and now awaits a final vote before heading over to the Senate.

Topic: Public Safety

Bill #/Title (linked): HB 1251 (Emergency Ambulance Services)

Update:

• HB 1251 (Rep. Tim O’Brien) formally designates emergency medical services — including emergency ambulance services — as an essential service to protect public health and safety, elevating EMS alongside other core public safety functions.
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• The bill confirms that providing emergency medical services is an essential purpose of political subdivisions, giving counties and local units clearer authority and responsibility to ensure reliable EMS coverage.
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• HB 1251 directs county commissioners to determine areas that are unserved by emergency ambulance services and take steps to ensure coverage through options such as county-run services, contracts with public/private/nonprofit providers, or interlocal agreements.

Action Items:

• The bill passed out of the House Veterans Affairs and Public Safety committee with a vote of 12-0. However, because the bill has a fiscal impact, it has been recommitted to House Ways & Means, and it is currently unclear whether it will receive a hearing at this time.

Topic: Townships

Bill #/Title (linked): HB 1315 (Township Reorganization)

Update:

• HB 1315 (Rep. Shonkwiler) aims to reorganize townships across the state, addressing disparities in fiscal control, transparency, and service costs per resident.

• The proposal, which has garnered support from various organizations such as the Indiana Chamber of Commerce and the Indiana County Commissioners Association, contends with issues like higher taxes and strained budgets resulting from outdated local government structures. However, some opposition exists, notably from the Indiana Township Association, which expressed concerns over township consolidation difficulties.

• An amendment proposed by Rep. Garrett Bascom, R-Lawrenceburg, was adopted by consent, refining the bill's language regarding mergers and annexations.

Action Items:

• Despite some unresolved questions about service continuity, the committee passed the amended bill with a 9-3 vote. It is now eligible for second reading amendments and further consideration.

Bill #/Title (linked): SB 270 (Township Mergers)

Update:

• SB 270 (Sen. Rick Niemeyer) creates a statewide framework for township mergers (not elimination) by requiring DLGF to score townships and directing those above a set threshold to merge with a lower-scoring township, with mergers effective by Jan. 1, 2028 (excluding Marion County).

• The bill lays out a local process for implementation and clarifies mergers are intended to preserve key township functions (ex. township assistance, fire protection, cemetery care) and do not eliminate township assessors.

• Amendment #2 (adopted by consent) allows DLGF to prescribe forms, ensures each county keeps at least one township, and requires representation from merging townships on the new township board until the 2030 election.

Action Items:

• SB 270 passed out amended 8–2, was recommitted to Senate Tax & Fiscal Policy, and is expected to be heard next Tuesday at 7:30 AM.

Topic: Homelessness

Bill #/Title (linked): SB 285 (Housing Matters)

Update:

• SB 285 (Sen. Cyndi Carrasco) establishes a statewide “Prohibition of Street Camping” framework, making it unlawful to camp/sleep/use land owned by the state or a political subdivision for long-term shelter unless authorized by law, and setting up an enforcement process that begins with a warning and an offer of transport to services/shelter.

• Amendment #2 extends the “cooling off” period from 24 hours to 48 hours after a warning before a person is at risk of committing a misdemeanor for a repeat violation.

• Amendment #3 narrows enforcement language by removing “prosecuting attorney” from the list of individuals a political subdivision may not prohibit or discourage from enforcing local ordinances related to public camping/sleeping/sidewalk obstruction (leaving the enforcement reference focused on law enforcement).

• The bill also includes reporting/accountability provisions, including required reporting to the Indiana Housing and Community Development Authority related to Continuum of Care funding recipients and annual arrest reporting by local law enforcement agencies.

Action Items:

• SB 285 passed amended 8–2 and now awaits second reading on the Senate floor.

Topic: Alcohol & Tobacco Matters

Bill #/Title (linked): SB 185 (Alcohol and Tobacco Matters)

Update:

• SB 185 (Sen. Ron Alting) updates Indiana’s alcohol and tobacco laws, with a major focus on strengthening oversight of tobacco and vapor products.

• Amendment #1 (Adopted) allows beer wholesalers to store, transport, and sell beer to FDA-registered food manufacturers for use as an ingredient.

• Amendment #2 (Adopted) modernizes Indiana’s e-liquids statute, updating terminology, clarifying FDA compliance language, and adding protections related to foreign adversary products.

• The bill also bans e-liquids made by foreign adversaries and shortens tobacco sales certificate validity from three years to one year, with additional enforcement updates.

Action Items:

• SB 185 passed out of committee amended 9–0 and has been recommitted to Senate Appropriations, where it now awaits a hearing.

Topic: Priority Bills

Bill #/Title (linked): HB 1003 (Boards and Commissions)

Update:

• HB 1003 (Rep. Steve Bartels), a broad boards-and-commissions consolidation bill, with the author emphasizing the goal of streamlining state government by eliminating duplicative or inactive entities and improving efficiency.

• The committee adopted a package of three amendments in one motion, with Rep. Bartels providing a “cheat sheet” to members outlining the specific boards/commissions and sections being removed to help track the scope changes during the hearing.

• Amendment #1 (Bartels) – Strip & Insert significantly narrowed HB 1003 by deleting major sections of the bill, including removing provisions related to the Commission on Supplier Diversity (effectively stripping out XBE/Supplier Diversity-related changes), as well as removing language tied to the BMV Commission, statewide public safety communications/911, and multiple other board/council restructures; adopted by consent.

• Amendment # 3 (language not publicly available to date) (Bartels) addressed the building code transition framework by clarifying the shift in authority/process under DHS and laying out a path toward bringing building codes forward for codification/adoption in 2028, while also allowing streamlined approval for projects choosing to build to higher standards once codes are adopted.

• Amendment #4 (Miller) amended the building code language further to clarify there will be no building code changes until the General Assembly adopts the codes, ensuring DHS does not move forward with new rules ahead of legislative adoption.

• Testimony received reflected both strong support and significant concerns, with supporters emphasizing leaner government, reduced duplication, and improved efficiency, while opponents and technical stakeholders raised concerns about maintaining transparency, citizen oversight, and subject-matter expertise—particularly around proposals affecting the Natural Resources Commission (NRC) and the building/fire code adoption and variance process.

Action Items:

• HB 1003 will continue to be worked in committee, with additional amendment language expected next week (including further section removals and targeted changes such as the NRC sunset proposal, Native American commission/license plate fund transfer language, and other board adjustments), and the bill is anticipated to receive continued testimony and discussion at next week’s hearing.

Topic: Tort Reform

Bill #/Title (linked): HB 1417 (Causes of Action and Damages)

Update:

• HB 1417 (Rep. Matt Lehman) is the House omnibus tort reform bill and remains highly controversial as introduced.

• The bill is expected to be significantly narrowed to improve its chances of moving, potentially down to:

• Public nuisance language

• Increase in qualified settlement offer caps

• The bill also includes TNC (rideshare) provisions, but we are hearing House Judiciary leadership may strip most (if not all) of that language because the bill is viewed as too big, too fast.

Action Items:

• We have heard HB 1417 could be scheduled for a hearing in House Judiciary on January 26th, but this has not been posted to date. We will continue tracking updates and amendments ahead of committee action.

Your bill track for the 2026 legislative session can be found here. This is a live bill track and will be updated when we add bills, hearings are scheduled, votes are taken, etc.

IMPORTANT SESSION DATES:

• January 26: Committee Report Deadline (First Half)
• January 28: 2nd Reading Deadline (First Half)
• January 29: 3rd Reading Deadline (First Half)
• February 19: Committee Report Deadline (Second Half)
• February 23: 2nd Reading Deadline (Second Half)
• February 24: 3rd Reading Deadline (Second Half)
• February 25 through 27: Conference Committees
• February 27: Anticipated Sine Die

IMPORTANT LINKS

House Committee Assignments

Senate Committee Assignments

House Calendar

Senate Calendar

Please review your live Bill Tracking Report

Please feel free to distribute this email or contact us and we can add you to the distribution list. Don’t forget to contact us with any questions or concerns.

All the best,

Caryl Auslander

causlander@torchbearerIN.com

Jordan Rose

jrose@torchbearerIN.com

Madison West

mwest@torchbearerIN.com

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